Having kids and getting back to work problems (maternity leave, employees, unemployment benefits)

[Dvo654321]

So I wanted to start a thread in regards to situation my wife is going through to hear anyones advice or experience in this matter.
My wife went on maternity leave and filled out fmla paperwork before having our twin boys. She also has 3 months of vacation time saved up to be paid throughout. While she was out of work her department got 2 full time employees to replace her. My wife has 6 plus years experience at this job.
As she was getting close to going back to work we were trying to decide if full time or part time would be better when thinking about daycare etc. She was trying to negotiate a new pay-rate given the 2 new employees she would end up supervising upon her return but her boss stopped responding or didnt get her last 2 responses in the negotiation process. My wife is a pastry chef and when the owner didnt get back to her she reached out to executive chef saying ill be coming back part time.
She then goes to the job to introduce herself to the new staff and to try to get idea of when she would be needed. The person that was doing wedding cakes in her absence freaked out when she saw my wife there and said she refuses to work with my wife and walked out on the job and said she wasnt coming back if my wife was coming back.
The owner, assuming now my wife is only available part time since he withdrew himself from the full time negotiation discussion had no choice but to tell my wife he no longer had job for her so the pastry chef who has been there 3 months would come back to work the next day. In beginning stages of the negotiations he did tell her, per fmla laws that her job is still available at same rate and benefits.
So... upon her leaving the job on her final day she has a document stating (bosses name and company) will not contest unemployment and owner signed it. Followed by my wife writing turned down full time job and she signed the same paper.
She has since filed for unemployment but seems to be taking some time and little confusion since she has been getting vacation paychecks while on maternity leave in regards to last day paid and last day worked.
To the best of my knowledge, the definition of unemployment benefits is to temporarily compensate employees whom have lost their job at no fault of their own!? Is she at fault? Any advice or comments would be great.

Sorry so long. Just felt like a lot of the details were important to mention.....

[RMD3819]

Did your wife quit or was she fired?